When will the world wake up to water scarcity?

The Middle East is one of the regions most vulnerable to climate change; countries such as Yemen, Syria and Iraq are experiencing demonstrable – and dangerous – levels of drought and desertification. However, the region’s particular reliance on water predates global warming by millennia, something that is strongly reflected in its culture.

Depictions of water abound in classical Arab literature and ma’a – the Arabic word for water – has spiritual and cultural significance. It is a source of life and prosperity. Just this week, UAE President Sheikh Mohamed has called for rain prayers to be held in all mosques in the Emirates on Saturday, a tradition that is performed in Muslim-majority countries when rainfall is delayed.

Elsewhere in the Gulf, the issue of water – or rather the lack thereof – was highlighted this week at the Cop16 UN summit to combat desertification being held in Saudi Arabia. The country’s Crown Prince, Mohammed bin Salman, yesterday announced plans to set up an international Global Water Organisation that will be based in Riyadh and the hashtag “united for water” is widely circulating on social media in the kingdom. These are notable developments because the dangers posed by desertification, drought and land degradation are simply not getting the global attention they deserve.

President Sheikh Mohamed initiates an effort to address global water scarcity

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A key reason for this was outlined by Dr Osama Faqeeha, Saudi Arabia's Deputy Minister of Environment, Water and Agriculture, who told The National this week that “many people think combating desertification is a challenge for arid countries”. On the contrary, it is a problem with global ramifications. In September, the World Economic Forum cited UN data that claims 100 million hectares of productive land are degraded each year, droughts are becoming more common and three quarters of people are expected to face water scarcity by 2050.

More worryingly, the World Wildlife Fund last year published the first ever annual estimate of the economic value of the world’s water and freshwater systems. It found them to be worth $58 trillion – equivalent to 60 per cent of global GDP. The continuing degradation of rivers, lakes, wetlands and aquifers – many of which are found in non-arid countries – threatens the worldwide economy and poses profound problems for human and planetary health.

Water scarcity and drought undermine food security and fuel forced migration. Conflict over dwindling water resources is another reality to faced – the Pacific Institute’s Water Conflict Chronology website lists thousands of disputes and violent clashes over water resources that go back as far back as ancient Sumaria.

Just as climate finance was at the heart of the recent Cop29 summit in Baku, funding ways of stopping or reversing desertification should command the attention of policymakers

Just as climate finance was at the heart of the recent Cop29 summit in Baku, funding ways of stopping or reversing desertification should command the attention of the policymakers meeting in Riyadh. The UN says investment in nature-based solutions must increase more than twofold, to reach at least $542 billion by 2030 and Dr Faqeeha wants businesses to move more quickly to fill the finance gap and tackle the effects of drought.

Given their intimate appreciation of water’s importance, countries in this region have much to share with the world when it comes to these issues. The UAE, for example, has invested significantly in not only encouraging rainfall through cloud seeding but also works hard to conserve and recycle its existing water supplies. Next year, Dubai will complete a 27.2 million litre Aquifer Storage and Recovery project for desalinated water.

For generations, the people of the Middle East have treasured water. If more of the world can emulate this connection, global society will be one step closer to avoiding the worst-case scenario of a desiccated, arid planet.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

A timeline of the Historical Dictionary of the Arabic Language

2018: Formal work begins
November 2021: First 17 volumes launched
November 2022: Additional 19 volumes released
October 2023: Another 31 volumes released
November 2024: All 127 volumes completed

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Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.